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OS JR 18-053

OS JR 18-053 - JICA

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OSJR

18-053

1

<Notes and Disclaimers>

・This report is produced by the trust corporation based on the contract with JICA. The contents of

this report are based on the information at the time of preparing the report which may differ from

current information due to the changes in the situation, changes in laws, etc. In addition, the

information and comments posted include subjective judgment of the trust corporation. Please

be noted that any actions taken by the users based on the contents of this report shall be done

at user’s own risk.

・Neither JICA nor the proposed corporation shall be responsible for any loss or damages

incurred by use of such information provided in this report.

2

Contents

Chapter 1: Executive Summary ................................................................................................................... 3

Overview of the Survey and Consistency with Development Themes .......................................... 3

1-1. Overview of the Survey ............................................................................................................... 3

1-2. Background of the Survey ........................................................................................................... 3

1-3. Survey Objective ......................................................................................................................... 3

1-4. Outline of the Business Model .................................................................................................... 4

1-5. Consistency with Development Themes ..................................................................................... 4

Survey Method................................................................................................................................... 4

2-1. Overall Survey Plan .................................................................................................................... 4

2-2. Survey Period .............................................................................................................................. 5

2-3. Survey Areas ............................................................................................................................... 5

2-4. Survey Organization and Roles ................................................................................................... 6

2-5. Verification Items ........................................................................................................................ 7

Verification Results ........................................................................................................................... 7

3-1. Feasibility of business ................................................................................................................. 7

3-2. Base for Determining Feasibility of Business and Verification Results ...................................... 7

3-3. Remaining Issues and Actions for the Future .............................................................................. 7

3-4. Business Launch Plan .................................................................................................................. 7

Chapter 2: Details of Survey Results ........................................................................................................... 9

Investment and business environments (policies and systems, infrastructure and related

facilities, and others) ......................................................................................................................... 9

1-1. Policies and legal systems related to foreign investment in general ........................................... 9

1-2. Legal systems related to the business and need to acquire permits and licenses ....................... 11

Market for the Concerned Business .............................................................................................. 14

2-1. Surveys on Current Market Conditions (Market Competition, Market Size, Distribution Systems

and Others) ................................................................................................................................ 14

2-2. Marketing Research on Target Purchasers ................................................................................ 16

2-3. Distribution and Sales Related Survey ...................................................................................... 20

Development of Business Plans ...................................................................................................... 23

3-1. Development of Verification Matters to be Used as Criteria for Commercialization ................ 23

3-2. Procurement Plan for Raw Materials and Equipment ............................................................... 25

3-3. Production, Distribution, and Sales Plans ................................................................................. 25

3-4. Personnel Plans and Human Resource Development Plans ...................................................... 25

Consideration for the Development Effect by Implementing This Project ................................ 26

4-1. Setting the Development Issues We Want to Solve through BOP Business and Indicators ...... 26

4-2. Scenario for Producing the Development Effect after BOP Business is Implemented (Draft) . 29

Consideration for the possibility of collaboration with JICA projects ....................................... 29

3

Chapter 1: Executive Summary

Overview of the Survey and Consistency with Development Themes

1-1. Overview of the Survey

Items Details

Objective To determine the feasibility of the Yakult business making the most of

the Yakult Ladies’ organization, encouraging the self-reliance of

women, including those in the BOP class, through which useful

products for human health are delivered to many homes

Period March 2017 to December 2018 (22 months)

Areas for activities Yangon and Naypyidaw in Myanmar

Outline of businesses for

commercialization

Manufacturing and sales of the Yakult Lactobacillus-based beverage

and the development of an original logistics network, making the most

of Yakult Ladies in Myanmar

Target development effects and

beneficiaries

Job creation for women and establishment of a national health practice

in Myanmar

Activity details ① Surveys including preparatory studies based on literature and the

like and interviews with people at concerned authorities and

organizations, as well as experts in Myanmar

② A survey measuring the receptive capacity of 1,000 men and 1,000

women including drinking tests for the actual product in the

Yangon area, in five monthly household income levels, and four

age groups.

③ A survey for measuring willingness to work of 500 women in their

20s to 40s in the Yangon area, in five monthly household income

levels, and three age groups

④ Interviews with people at companies and organizations in Myanmar

where women work successfully, based on findings through the

surveys stated in ① to ③ above

1-2. Background of the Survey

The Yakult Ladies model, which offers employment opportunities for women based on the corporate

philosophy of Yakult Honsha Co., Ltd., is already contributing to improving the standard of living for people,

including members of the bottom of the pyramid (BOP) class, in many countries. Yakult Honsha Co., Ltd. is

aiming to develop businesses in Myanmar, which it considers the last remaining large country among the

members of the Association of Southeast Asian Nations (ASEAN), in its medium- and long-term business

plans.

1-3. Survey Objective

The objective of the survey is to determine the feasibility of the Yakult business making the most of the

Yakult Ladies’ organization, encouraging the self-reliance of women through which useful products for

human health are delivered to many homes.

4

1-4. Outline of the Business Model

Business model diagram

1-5. Consistency with Development Themes

Employment difficulties and unsanitary conditions due to low income are development themes in Myanmar.

Under such conditions, many children have poor health and are dying from acute diarrhea caused by enteric

infections in particular. The Yakult Lactobacillus-based beverage, whose Lactobacillus casei strain Shirota

has been proven to reach the intestines alive and improve the intestinal environment, will be able to (1)

contribute to improving living standards by generating employment opportunities for local women through

the recruitment and education of the Yakult Ladies responsible for the home delivery system, and (2) develop

healthy local communities through its sustained consumption.

In the Yakult Honsha Co., Ltd.’s business model, Yakult Ladies are educated systematically. Women who are

to be employed as Yakult Ladies are guided and supported to stand on their own feet after several months of

painstaking training through programs, including desk studies and on-the-job (OJT) training. Yakult Honsha

Co., Ltd. aims to increase income by creating jobs, promote health, and, by extension, improve the standard

of living while reducing the gender gap through the provision of opportunities to continue drinking its product,

which conditions the intestinal environment, through a business model involving vocational training for local

women called Yakult Ladies.

Survey Method

2-1. Overall Survey Plan

Interview experts at concerned organizations on the latest local trends, in addition to conducting advance

desk research. Shape plans for solving development themes to prepare for a sales launch following the

operation of a factory by studying target women’s willingness to work, in addition to the health awareness of

people living in Myanmar, including the BOP class, and conducting drinking tests for the actual product. Use

all findings through on-site surveys, health awareness surveys and studies on willingness to work effectively

and apply them to holding workshops and developing a network in preparation for commercialization.

5

2-2. Survey Period

① First on-site survey: interviews with people at concerned authorities and organizations, as well as

experts in Myanmar

Schedule A: Monday, June 5 to Saturday, June 10, 2017; Schedule B: Monday, July 10 to Saturday, July

15, 2017

② Second on-site survey on health awareness: a survey for measuring receptive capacity: a survey

including Yakult drinking tests for 1,000 men and 1,000 women including drinking tests for the actual

product in the Yangon area, in five monthly household income levels, and four age groups

Tuesday, December 5 to Friday, December 16, 2017

③ Second on-site survey on women’s willingness to work: a survey for measuring willingness to work for

500 women in their 20s to 40s in the Yangon area, assumed to be candidates for Yakult Ladies, in five

monthly household income levels, and three age groups

Tuesday, December 5 to Friday, December 16, 2017

④ Third on-site survey: interviews with people at companies and organizations in Myanmar where women

work successfully

Wednesday, September 19 to Friday, September 21, 2018

2-3. Survey Areas

Yangon and Naypyidaw areas in Myanmar

Fiscal 2017 Fiscal 2018 and subsequent fiscal years

Research

projects

Pilot

projects

Commercialization

● Desk research

● Interviews with

people at

concerned

authorities and

organizations, and

experts in Myanmar

Drinking test marketing

Surveys on the health

awareness of ordinary

consumers

Surveys on women’s

willingness to work

Interviews with people at

companies and organizations

in Myanmar where women

work successfully

6

2-4. Survey Organization and Roles

運営 運営

Yakult Honsha Co., Ltd. Supervise the business as a whole and act as the person in charge of contact with JICA

Survey 1 on investment and business conditions/survey related to

manufacturing/distribution, sales and marketing studies/business plan formulation

Survey on legal restrictions related to health claims

Lactobacilli studies and academic research Survey 1 related to food restrictions, safety and

hygiene

Survey 2 related to food regulations, safety and hygiene

Survey related to distribution

Assistant to the person in charge of the business/seminar sponsorship support

Survey process management/adjustments in Japan/accounting

Proposing company (business

Outside personnel supervision/workshop operation supervision

Survey plan formulation/execution and management of surveys on women’s willingness to work

Preparations for interviews with experts 2/workshop execution management

Responses to cooperating companies in Myanmar/execution and management of interviews with experts/execution and management of drinking

tests and health surveys

Promotion of interviews with experts/drinking test and health survey supervision

Drinking test and health survey supervision/sample logistics management

Execution of interviews with experts 1/consumer survey operation and execution, and survey analysis/baseline studies and examination of

development effects

Support for consumer surveys and analysis/support for baseline studies and examination of development

effects

Execution of interviews with experts 2/preparations for workshop surveys

Preparations for interviews with experts 1/interviews in Japan

Outside personnel

7

2-5. Verification Items

① Whether or not a high-certainty sales scheme using Yakult Ladies can be established (establishment

of sales networks, high-certainty production and distribution networks)

② Whether or not local needs can be satisfied in terms of health awareness, price and taste (matching

paying capacities of consumers)

③ Adaptability to localization by understanding our USP (Unique Selling Proposition: local

establishment of a system for our strength, Yakult Ladies) and issues before launch (marketing from

zero)

④ Whether or not our sales and distribution methods work (cultivation of Yakult Ladies)

⑤ Whether or not we can build a relationship with related authorities and academic institutes for

cooperation.

Verification Results

3-1. Feasibility of business

We see that we can proceed with employment and education of Yakult Ladies and start of product sales at an

appropriate timing when plant is completed and ready for production.

3-2. Base for Determining Feasibility of Business and Verification Results

As a result of the health awareness survey including tasting that we conducted to understand the demand for

the product, which is a source of Yakult Lady job creation, there were high acceptance levels for the price,

taste and expectations for its benefit to health. Based on those, we anticipate a high consumer appetite. In

addition, since 90% of consumers had favorable feelings regarding home delivery by women, we consider

that the business can get off to a smooth start. The details are described in Chapter 2.

3-3. Remaining Issues and Actions for the Future

Items Remaining issues Actions

Distribution Secure sufficient number of Yakult

Ladies

Consider a recruitment guidebook based on the

survey results

Sales and

marketing

Promote understanding of probiotics

products (Lactobacillus-based

beverage Yakult)

Improve recognition of Yakult

Enhance relationship with related authorities and

academic institutes

3-4. Business Launch Plan

Yakult headquarters has established Yakult Myanmar Co., Ltd. aiming toward our business expansion in

Myanmar and planned and started construction of a local production plant of Lactobacillus-based beverage

Yakult. The suggestions obtained from the survey results will be used as references for planning and

expansion of the business in the future. The timing for completion of the plant and production equipment,

start of trial production, start of full-swing production, and start of sales activities is currently under

consideration.

8

Outline of Plant at Yakult Myanmar Co., Ltd.

(1) Location: Thilawa Special Economic Zone, a suburb of Yangon in Myanmar

(2) Area: Approx. 20,800 m2

(3) Building area: Approx. 7,453 m2

(4) Total floor area: Approx. 9,045 m2

(5) Start of construction: October 2016

(6) Produced item: Yakult

(7) Production capacity: 134,000 pieces per day at first

Myanmar plant, currently under construction (as of September 2018)

9

Chapter 2: Details of Survey Results

Investment and business environments (policies and systems, infrastructure and related facilities,

and others)

1-1. Policies and legal systems related to foreign investment in general

(1) Myanmar legal systems

Myanmar has the three following legal systems, including especially important legal regulations in terms of

Japanese companies’ inroads into Myanmar.

① The Myanmar Companies Act

(a) Definition of foreign companies

Foreign companies were redefined by the New Companies Act as companies with more than 35%

of stocks owned by foreign employees of nationalities other than Myanmar or foreign companies.

(b) Establishment of foreign companies

The Old Companies Act stipulated that permission to operate a business in advance from the

Directorate of Investment and Company Administration (DICA) was required to establish a foreign

company in Myanmar. Because the New Companies Act does not stipulate a system for acquiring

permission to operate a business, you can be exempt from the process of acquiring permission to

operate a business when establishing a foreign company.

(c) Establishment of subsidiaries by foreign companies

Because the New Companies Act permits foreign companies to own the stocks of other companies,

they are permitted to establish subsidiaries.

(d) Number of companies’ stockholders

The New Companies Act permits the establishment of companies with a stockholder.

(e) Stipulations about investment in kind

Because the New Companies Act stipulates that the value of investment in kind and the grounds for

its evaluation must be recorded by a companies’ board of directors, the board of directors takes

responsibility for investment in kind.

② Myanmar Foreign Investment Law

(a) Basic investment targets

Business enterprises

Movable property, real estate and related real estate rights, cash, pledge, mortgage, lien,

machinery, equipment, spare parts and related tools

Companies’ equity rights, stocks and debentures

Intellectual property rights

Contracted rights to make claims with monetary value

Contracted rights for construction, manufacturing and so on

Transferable rights based on contracts related to the exploration of natural resources and so

on

10

(b) Businesses whose investment activities are permitted only if you submit proposals to the

MIC and gain permission

Strategically important investment to Myanmar

Massive capital-intensive investment project

Investment that may have a huge impact on the environment and society

Investment using land and buildings owned by the national government

Investment designed by the Myanmar federal government that needs to be proposed to the

MIC

(c) Forbidden investment activities

Investment activity in businesses that may import dangerous or harmful waste into Myanmar

Investment activity in businesses that may import plants and animals under investigation or

not approved yet into Myanmar

Investment activity in businesses that may affect the traditions and customs of Myanmar’s

ethnic groups

Investment activity in businesses that may harm the general public

Investment activity in businesses that may affect nature and ecosystems

Investment activity in businesses related to the manufacturing of products and services

forbidden by existing laws

In addition, the Myanmar Investment Law permits you to lease land and buildings for a long time by

following the newly regulated procedures for approval, which saves you the trouble of submitting

applications to the MIC.

Regarding preferential measures in taxation, the period of exemption from corporate tax for companies that

received permission from the MIC varies from 3 years to 5 years to 7 years according to the level of

development of the region. Preferential measures are only applicable to business designated by the MIC.

③ The Special Economic Zone Law

(a) Classification of Free Zones and Promotion Zones in the Special Economic Zone

Area Free Zones Promotion Zones

Target

business

- Export-oriented manufacturing

industry

- Manufacturing industry by

indirect export

- Business for the Myanmar

domestic market

- Residential districts

- Supermarkets

- Banking

- Insurance industry

- Schools

- Hospitals

- Entertainment

facilities

Permitted

matters

- Exports are the main target, but

sales to the domestic market and

Promotion Zones are also

possible. (In such case, you must

follow the necessary procedures.)

- Sales to Free Zones and direct exports to foreign

countries are possible. (For sales to Free Zones,

you must follow the necessary procedures.)

(Source: Created based on materials at the time of the overseas briefing service in the JETRO Yangon Office)

11

(b) Stipulations about investment incentives for the Special Economic Zones

Type of tax exemption Old Investment

Law

New Special Economic Zone Law

Free Zones Promotion

Zones

Special

economic zone

developer

Target

business

Tax exemption 5 years 7 years 5 years 8 years

50% tax exemption -

In and after the

first year

5 years

In and after the

first year

5 years

In and after the

first year

5 years

50% tax exemption

on reinvestment

profit

In and after the

sixth year

In and after the

first year

5 years

In and after the

first year

5 years

In and after the

first year

5 years

Import

tariff

Building materials,

manufacturing

equipment and raw

materials

Tax exemption Tax exemption More than 5

years Tax exemption

Land use

Initial 50 years

(Two 10-year

extensions are

possible)

Initially 50 years

(One 25-year extension is possible)

(Source: Created based on materials at the time of the overseas briefing service in the JETRO Yangon Office)

(c) Setting up a One Stop Service Center (OSSC)

A facility established under the direction of the Special Economic Zone Management Committee to

supervise functions related to the special economic zone.

(d) The relaxation of foreign capital regulation

The New Special Economic Zone (SEZ) Law relaxed foreign capital regulation significantly.

Depending on the approval by the Special Economic Zone Management Committee, it is even

possible to make a 100% investment in foreign capital. In addition, it is also possible to invest in

business areas that were regulated under the Old Investment Law.

1-2. Legal systems related to the business and need to acquire permits and licenses

To grasp the circumstances surrounding the policies and legal systems related to the business, we conducted

a survey with the main managers of facilities located in Naypyidaw and Yangon after investigating major

administrative, medical and research organizations. In addition, regarding the development of the business,

we also conducted surveys with related organizations about administrative organizations that give approval

and authorization to product production, putting products on the market and the current state of gut bacteria

research and clinical tests, which are essential to basic health data.

12

(1)Outline of implementation for Expert Visiting Survey

Period Schedule A: From June 5 (Monday) to 10 (Saturday), 2017

Schedule B: From July 10 (Monday) to 15 (Saturday), 2017

Area Yangon and Naypyidaw

Target Administrative organizations

Organization name Location

The Ministry of Commerce Naypyidaw

The Ministry of Health and Sports Naypyidaw

Left: The Ministry of Commerce, right: The Ministry of Health and Sports

(Source: photos taken on a visit to Myanmar)

Medical and research organizations

Organization name Location

Yezin Agricultural University Naypyidaw

Naypyitaw General Hospital Naypyidaw

Myanmar Medical Council (MMC) Yangon

The University of Medicine 1, Myanmar Yangon

Medical Research Institute Yangon

Yangon General Hospital Yangon

North Okkalapa General Hospital Yangon

Thingangyun Sanpya General Hospital Yangon

Myanmar Medical Council (MMC) Yangon

Myanmar General Practitioners Association

(MGPA)

Yangon

Victoria Hospital (private) Yangon

Yezin Agricultural University North Okkalapa General Hospital Victoria Hospital

(Source: photos taken on a visit to Myanmar)

(2) Circumstances after the institution of the Law Concerning Consumer Protection

Based on the Law Concerning Consumer Protection, which was enacted by parliament in March 2014, the

Consumer Agency was established in April 2016. This agency consists of the headquarters made up of 23

officials and regional branches. This move was meant to keep pace with other countries as a member of the

13

Association of South East Asian Nations (ASEAN) and the project is being implemented according to a 10-

year plan for 2016-2025. Of the planned 2,700 staff members, 1,700 have already been secured.

The Food and Drug Administration (FDA) takes charge of quality control of foods and medical supplies

according to the Codex Alimentarius. Currently, laws for the quality control of foods are insufficient, so the

Consumer Agency carries out three activities: ① protecting consumers’ rights, ② giving directions for the

distribution of safe products to the market, and ③ researching the quality of products. In an effort to enhance

laws and help raise awareness of product safety, the agency also conducted 12,000 awareness-raising

campaigns and 6,000 food safety tests in the last year alone and created a change in consumer awareness

about having the right to choose products.

Regarding discussions about specific future food safety and health claim systems, if you have an office in the

Thilawa SEZ, you must contact the officials sent there by each government organization.

(3) About marketing products

In order to put products on the market, they need to be inspected by Yangon City Development Committee

(YCDC) and you must take the following procedures in advance.

① Fill out the form and submit it (does not need to be submitted to Naypyidaw)

② Pay an inspection visit to the factory

③ Submit a product sample to be examined

④ Apply to YCDC for a product inspection

(4) About clinical testing

You must acquire permission from the Ministry of Health for clinical testing. The Ministry of Health makes

a judgment about the submission of written plans on clinical testing programs in cooperation with the

Department of Medical Research (DMR) and hospitals. You must take the following procedures.

① Submit a written plan to the Ministry of Health and Sports to gain permission for implementation

② If the contents of testing are approved, the ministry will choose a department suitable for

implementation (DMR and FDA, and others) and build a system for managing the test

③ A proper testing field (hospital) is chosen within the organization that manages testing and makes an

offer

④ The Human Testing Ethics Committee is run by a committee within the DMR, not each hospital

(5) About organizations conducting research on microorganisms

The FDA and the DMR within the Ministry of Health are government-related organizations to which

microorganism researchers belong, and the National Health Laboratory is a government-related organization

that handles infectious diseases. The most important organization is ① the Myanmar Medical Council. ②

The Myanmar Academy of Medical Sciences (MAMS) makes recommendations to the Minister of Heath as

a thinktank. For joint projects with foreign entities, you must submit an application to the Ethics

Review/Research Committee (ERC) of the DMR to obtain approval. ③ The Myanmar Medical Association

is an academia-related organization and the Microorganism Research Association is a field-specific

organization under its umbrella.

14

Market for the Concerned Business

2-1. Surveys on Current Market Conditions (Market Competition, Market Size, Distribution Systems and

Others)

(1) Competition in the Market and Market Size

According to officials in charge at local food manufacturers, three types of beverages—bottled water,

carbonated drinks and energy drinks—currently occupy the beverage market in Myanmar. Other beverages,

including milk-based drinks, are handled collectively as others. Their market is said to be extremely small.

Three companies in Myanmar distribute and sell products similar to the Lactobacillus-based beverage, the

focus of the concerned business. None of these three has a Lactobacillus-based beverage manufacturing

facility in Myanmar. Their products are manufactured in Thailand and carried to Myanmar via overland

transport.

(2) Distribution Systems

Currently, overland transport using trucks is the main stream of logistics in Myanmar. The time required for

overland transport using trucks is said to be decreasing with the improvement of the road-related

infrastructure. In the opinion of leading retailer C, the introduction of global positioning system (GPS)

functions and trucker functions to logistics based on third party logistics (3PL) contracts with foreign-

affiliated companies has made logistics management easier in recent years. The retailer shared the view that

logistics via cold chains will spread in Myanmar in the near future, with Yangon at the center of this trend.

In many parts of relatively large cities, such as Yangon, Mandalay, Naypyidaw and Taunggyi, recently

products have been sold to consumers via retail routes, including hypermarkets such as Ocean Supercenter,

supermarkets such as City Mart, and convenience stores such as G & G. However, retailers in traditional

business categories, such as shops on the street and small, privately-run stores, continue to account for a large

volume of distributed products.

Beverage products are basically supplied to retailers in a variety of categories via wholesalers. There are also

cases in which companies in modern retail business categories purchase beverage products directly from their

manufacturers without going through wholesalers by forming an alliance with manufacturers.

Current Distribution Routes for Beverage Products in Myanmar

15

(Prepared based on interviews with officials at manufacturers and retail stores)

飲料メーカー

卸業者

<近代的小売業態>

■ ハイパーマーケット

■ スーパーマーケット

■ CVS(コンビニエンスストア)

<伝統的小売業態>

■ ゼー(市場)

■ 路上店

■ 小規模個人商店

消費者

Beverage manufacturers

Wholesalers

<Retailers in modern business

categories>

Hypermarkets

Supermarkets

CVS (convenience stores)

<Retailers in traditional business

categories>

Zei (marketplaces)

Shops on the street

Small, privately-run stores

Consumers

16

2-2. Marketing Research on Target Purchasers

(1) Implementation outline for average consumer survey

We conducted test marketing research to measure demand for Yakult products. Products which state that you

can improve your intestinal environment and maintain health by taking probiotics every day are new to

Myanmar consumers. Therefore, before staring local production and sales, we conducted test marketing by

importing Yakult products and holding a tasting for 1,000 average consumers. Also, we researched the

attitude toward health and understanding of the body, and the level of understanding of probiotics.

Although in the first interview survey of knowledgeable people it was found that probiotics was not widely

recognized even by researchers, it would be possible for average consumers to understand by providing

information and educating them through a face-to-face approach from a Yakult Lady. The taste and

characteristics of the products were highly evaluated in general. Of the respondents, 90% expressed a

favorable impression of the new face-to-face home delivery sales method in which women deliver products

to the homes and workplaces of customers. The products are expected to be well accepted.

- Survey period From Tuesday, December 5 to Friday, December 16, 2017

- Survey area Yangon area

- Survey target Men and women from age 20 to 49

- Valid response 1,000 people

- Respondent attribute Gender and age group: Men in their 20s, 30s, 40s and 50s; Women in their 20s,

30s, 40s, and 50s; 125 people per age group

Marital status: 303 married people, 667 single people, 30 other people (separated,

widowed)

SEC (household monthly salary category): A (above 2,000,000 MMK), B

(1,000,001-2,000,000 MMK), C (400,001-1,000,000 MMK), D (200,001-

400,000 MMK), E (200,000 MMK or less), 200 people, respectively

- Survey method CLT venue test (investigator interview method)

Reception of the survey in the venue (health attitude

survey)

Interview survey Explanation of probiotics

(Burmese)

17

(2) Understanding the intestinal environment and probiotics

In this survey we explained the body’s digestion mechanism and probiotics using an A4 panel in the face-to-

face method, and asked the level of understanding about the contents.

① Body’s digestion mechanism

Of the overall survey target, 34% replied, “I understood it well,” and 50% replied, “I think I understood it.”

The total of both parties reached 84%. Looking at the BOP segment, in SEC-D 29% responded, “I understood

it well,” with 46% responding, “I think I understood it.” In SEC-E 24% responded, “I understood it well,”

with 49% responding, “I think I understood it.” The results show that the lower the SEC, the lower the level

of understanding.

② Probiotics

Of the overall survey target, 28% responded, “I understood it well,” 49% responded, “I think I understood

it.” The total of both parties reached 77%. Similar to the body’s digestion mechanism above, there is a

tendency where the lower the BOP segment, the lower the level of understanding.

(3) Acceptance of the products

With regard to the evaluation of the products after tasting, 92% responded, “Delicious” about the taste.

Regarding ease of drinking, 98% responded, “Could drink regularly,” including 47% responding, “Could

drink daily.” The percentage of people who responded, “I don’t want to drink” was below 2%. For the

(expected) sales price, 91% replied, “Reasonable.” Because 90% highly evaluated sales performance,

responding, “They are likely to sell well,” it is expected that acceptance to purchase rate is high.

As points to note on sales, with regard to whether there is any drink that is similar to Yakult after the

explanation and tasting, 83% responded, “None.” Most people think it is a new product that they have never

before experienced. Therefore, it is preferable to educate people carefully about the body mechanism and the

product features of Yakult, as in this test marketing in the initial promotional activities. With regard to the

volume, 67% replied, “Small.” It is necessary to explain that unlike conventional soft drinks, regularly

consuming lactic acid bacteria will improve the intestinal environment.

① Taste

Q30.味(ひとつだけ)

0 0 0 0

全体 (N=1000) 0.0 0.0 0.0 0.0

男性 (n=500) 0.0 0.0 0.0 0.0

女性 (n=500) 0.0 0.0 0.0 0.0

20代 (n=250) 0.0 0.0 0.0 0.0

30代 (n=250) 0.0 0.0 0.0 0.0

40代 (n=250) 0.0 0.0 0.0 0.0

50代 (n=250) 0.0 0.0 0.0 0.0

おいしい

91.8

92.4

91.2

90.4

88.0

95.2

93.6

どちらでもない

7.1

6.8

7.4

9.2

9.6

4.8

4.8

おいしくない

2.4

無回答

(%)Taste (Select one)

Age g

roup

Delicious I can’t say either way Not delicious No answer

Overall

Men

Women

20s

30s

40s

50s

Gender

18

② Ease of drinking

③ Volume

④ Price

⑤ Presence of similar drinks

Q31.飲みやすさ(意向)(ひとつだけ)

0 0 0 0

全体 (N=1000) 0.0 0.0 0.0 0.0

男性 (n=500) 0.0 0.0 0.0 0.0

女性 (n=500) 0.0 0.0 0.0 0.0

20代 (n=250) 0.0 0.0 0.0 0.0

30代 (n=250) 0.0 0.0 0.0 0.0

40代 (n=250) 0.0 0.0 0.0 0.0

50代 (n=250) 0.0 0.0 0.0 0.0

毎日でも飲めそう

47.2

43.4

51.0

41.6

42.8

52.8

51.6

定期的に飲む

51.2

55.8

46.6

56.8

54.0

46.8

47.2

飲みたくない

2.4

3.2

無回答

(%)Ease of drinking (intention) (Select one)

Age g

roup

Could drink daily Could drink regularly Don’t want to drink No answer

Overall

Men

Women

20s

30s

40s

50s

Gender

Q32.容量(ひとつだけ)

0 0 0 0

全体 (N=1000) 0.0 0.0 0.0 0.0

男性 (n=500) 0.0 0.0 0.0 0.0

女性 (n=500) 0.0 0.0 0.0 0.0

20代 (n=250) 0.0 0.0 0.0 0.0

30代 (n=250) 0.0 0.0 0.0 0.0

40代 (n=250) 0.0 0.0 0.0 0.0

50代 (n=250) 0.0 0.0 0.0 0.0

少ない

67.4

66.8

68.0

73.6

67.2

66.0

62.8

ちょうどよい

32.6

33.2

32.0

26.4

32.8

34.0

37.2

多い 無回答

(%)Volume (Select one)

Age g

roup

Small Medium Large No answer

Overall

Men

Women

20s

30s

40s

50s

Gender

Q27.価格許容度(1本300MMKの場合)(ひとつだけ)

0 0 0 0

全体 (N=1000) 0.0 0.0 0.0 0.0

男性 (n=500) 0.0 0.0 0.0 0.0

女性 (n=500) 0.0 0.0 0.0 0.0

20代 (n=250) 0.0 0.0 0.0 0.0

30代 (n=250) 0.0 0.0 0.0 0.0

40代 (n=250) 0.0 0.0 0.0 0.0

50代 (n=250) 0.0 0.0 0.0 0.0

高い

2.4

2.4

妥当

91.4

89.4

93.4

90.0

91.2

92.4

92.0

安い

6.1

7.6

4.6

8.4

5.6

5.6

4.8

わからない 無回答

(%)Price acceptance (in the case of 300 MMK per bottle)

(Select one)

Age g

roup

Expensive Reasonable Inexpensive No answer

Overall

Men

Women

20s

30s

40s

50sG

ender

I don’t know

Q33.ヤクルトと似ていると感じた飲料の有無(ひとつだけ)

0 0 0 0

全体 (N=1000) 0.0 0.0 0.0 0.0

男性 (n=500) 0.0 0.0 0.0 0.0

女性 (n=500) 0.0 0.0 0.0 0.0

20代 (n=250) 0.0 0.0 0.0 0.0

30代 (n=250) 0.0 0.0 0.0 0.0

40代 (n=250) 0.0 0.0 0.0 0.0

50代 (n=250) 0.0 0.0 0.0 0.0

ある

17.1

15.2

19.0

22.8

16.4

16.0

13.2

ない

82.9

84.8

81.0

77.2

83.6

84.0

86.8

無回答

(%)Presence of drinks similar to Yakult (Select one)

Age g

roup

Yes No No answer

Overall

Men

Women

20s

30s

40s

50s

Gender

19

⑥ Prospect for sales of products

(4) Expectations for intestinal health

After explaining the body’s digestion mechanism and probiotics, we asked about the expectations for Yakult’s

effect on intestinal health. Of the overall survey target, 98% responded, “High expectations” and “Somewhat

high expectations.” There is not a large difference among the SEC, and in the BOP segment, the total nearly

reached 100%. It can be said that expectations for Yakult’s effect on intestinal health are very high.

(5) Attitude toward health

In the second field survey, we asked 1,000 average men and women, aged 20 to 59, who lived in the applicable

Yangon area about how they maintain their health. Approx. 72% responded, “I am careful about what I eat”

and “I am mindful about my sleeping hours and quality,” respectively, with 55% responding, “I am careful

about what I drink.” By gender, more women than men responded, “I am careful about what I eat,” and more

men than women responded, “I have an exercise routine.” About half of the respondents are careful about

what they drink, being mindful of their health. With regard to supplements, only 25% used them; and the

percentage was less than 33% in medicine.

With regard to “I am careful about what I drink,” we assume the issue of quality drinking water is mainly

involved. It seems that few people took an active attitude toward improving their gut using daily drinks to

prevent disease, and it is necessary to promote education.

Q29.売れ行きの見通し(ひとつだけ)

0 0 0 0

全体 (N=1000) 0.0 0.0 0.0 0.0

男性 (n=500) 0.0 0.0 0.0 0.0

女性 (n=500) 0.0 0.0 0.0 0.0

20代 (n=250) 0.0 0.0 0.0 0.0

30代 (n=250) 0.0 0.0 0.0 0.0

40代 (n=250) 0.0 0.0 0.0 0.0

50代 (n=250) 0.0 0.0 0.0 0.0

売れそう

89.6

87.0

92.2

88.8

88.0

91.6

90.0

売れない わからない

9.3

11.8

6.8

9.6

10.0

8.4

9.2

無回答

(%)Prospect for sales demand (Select one)

Age g

roup

Likely to sell well Not likely to sell well I don’t know No answer

Overall

Men

Women

20s

30s

40s

50s

Gender

Q25.腸の健康への期待度(ひとつだけ)

0 0期待

できる計

期待

できない計

全体 (N=1000) 0.0 0.0 97.7 1.4

A (2,000,000 MMK超) (n=200) 0.0 0.0 98.5 1.5

B (1,000,001 - 2,000,000 MMK) (n=200) 0.0 0.0 98.5 1.0

C (400,001 - 1,000,000 MMK) (n=200) 0.0 0.0 97.5 1.0

D (200,001 - 400,000 MMK) (n=200) 0.0 0.0 97.5 2.0

E (200,000 MMK以下) (N=200) 0.0 0.0 96.5 1.5

S

E

C

(

)

とても期待できる

74.8

70.5

75.0

74.5

77.0

77.0

まあ期待できる

22.9

28.0

23.5

23.0

20.5

19.5

どちらでもない 期待できない 全く期待できない 無回答

(%)Expectations for intestinal health (Select one)

SE

C

(Household

month

ly s

ala

ry c

ate

gory

)

High expectationsSomewhat high

expectationsI can’t say either way No expectations

Overall

A (Over 2,000,000 MMK)

E (200,000 MMK or less)

Total of positive

answers for

expectations

Low expectations No answerTotal of negative

answers for

expectations

20

How Yangon citizens maintain health

(Source: Second pilot project of health attitude survey from December 5 to December 16, 2017)

2-3. Distribution and Sales Related Survey

(1) Implementation outline of “Status of Women’s Work Survey,” the interview with the BOP

segment of Yakult Lady applicants

We conducted the survey to confirm the current status of women’s work and understand the attitude toward

work for the applicants as sales ladies, Yakult Ladies, who will become a major force in the distribution

networks for lactic acid drink products.

When we explained the outline using the sheet that describes the duties of a Yakult Lady who works around

the world, the BOP segment showed great interest in the work, and they were expected to recommend it to

surrounding people. However, the survey results revealed that approx. half of the women had the right to

decide whether they worked. Therefore, it is necessary to promote understanding of a Yakult Lady’s work to

their spouses and families, in addition to training, when we carry out recruiting activities.

- Survey period From Tuesday, December 5 to Friday, December 16, 2017

- Survey area Yangon area

- Survey target Average women aged 20 to 49

- Valid response 500 people

- Respondent attribute Age group: Women in their 20s: 166; women in their 30s: 167; women in their

40s: 167

Marital status: 325 married people, 163 single people, 12 people in other

(separated, widowed)

Presence of a child (children) living together: Yes: 275 people; No: 225 people

SEC (Household monthly salary category): A (above 2,000,000 MMK), B

(1,000,001-2,000,000 MMK), C (400,001-1,000,000 MMK), D (200,001-

400,000 MMK), E (200,000 MMK or less), 100 people, respectively

- Survey method CLT venue test (investigator interview method)

How Yangon citizens maintain health (2017) (Unit: %)

I am careful about what I eat

I am careful about what I drink

I take supplements

I take medicine

I have an exercise routine

I am mindful about my sleeping hours and quality

I quickly consult with my family doctor

Other

I am not particularly careful about anything

Overall Men Women

21

In this survey, applying SEC (household monthly salary category) for five segments (A~E: 100 people each)

to the survey target and using past data from the Myanmar Central Statistical Organization as a reference, the

survey target that falls under D (200,001-400,000 MMK) and E (200,000 MMK or less) of SEC were

positioned as the BOP segment. In order to clarify the attitude toward work of the BOP segment, A (above

2,000,000 MMK), B (1,000,001-2,000,000 MMK), and C (400,001-1,000,000 MMK) were defined as the

survey target for comparison.

Reception of the survey in the

venue (status of women’s work

survey)

Interview booths Survey scene Explanation of a Yakult

Lady (Burmese)

(2) Work status of the BOP segment

Looking at the current work status of the overall survey target, 60% responded, “I am working,” and 40%

responded, “I am not working.” When we only look at the BOP segment, the percentage of women who

responded, “I am working” in SEC-D was 57%, with 43% in SEC-E, which is less than 50%. On the other

hand, the percentage in SEC-C was 68%, and the percentage in SEC-B was the highest of all at 70%, with

the percentage in SEC-A at 64%. The percentage of working people was low in the BOP segment.

(a) Main purposes for working in the working BOP segment

When we asked the working survey target about their main purposes for working, 65% of overall women

responded, “To support my family,” which was the highest of all, followed by 55% in, “To save money for

the future of my family.” When we only look at the BOP segment, the percentage of women who responded,

“To support my family” exceeded 70%. It shows that as the SEC segment gets lower, they work for more

realistic reasons.

Overall

A (Over 2,000,000 MMK)

E (200,000 MMK or less)

To support my

family

To have more for

my children’s

education fees

To spend lavishly

on family

entertainment

and so on

To save money

for the future of

my family

To earn money

that I can spend

freely

My spouse

doesn’t (can’t)

work

Other

+5 points compared to

the overall target figure

-5 points compared to the

overall target figure

22

(b) Reasons why the non-working BOP segment does not currently work

When we asked the non-working survey target about their reasons for not working, 30% of women responded,

“There is no daycare,” which was the highest of all, followed by “Health reasons” (15%), and “I don’t have

any financial issues” (10%). When we only look at the BOP segment, 40% of women in SEC-D responded,

“There is no daycare,” with 33% in SEC-E. Also in SEC-E, 12% responded, “The workplace is not suitable.”

Therefore, solving issues with daycare and workplaces will help increase the percentage of working women

in the BOP segment.

(3) Attraction of work as a Yakult Lady

Of the overall survey target, 75% have felt “Attractive” about work as a Yakult Lady, with 11% responding

“Not attractive,” and 14% responding, “I cannot say either way.” When we only look at the BOP segment,

73% in SEC-D have felt “Attractive,” with 13% responding “Not attractive.” The results are nearly the same

as the overall survey target. However, the percentage of women in SEC-E who have felt “Attractive” was

79%, which is high, and the percentage of women who responded “Not attractive” remained at 8%. Therefore,

it was found that the lower SEC segment felt attracted to a Yakult Lady’s work.

(4) Authority to decide to work

When we asked whether they have the authority to decide to work, of the overall survey target, 60%

responded, “I can decide,” with 40% responding, “I can’t decide.” In the BOP segment, 53% of women in

SEC-D responded, “I can decide.” Women in the lower SEC segment tend to have less authority to decide.

(5) Points to note for consideration of developing sales networks

Keeping in mind the development of product sales networks by Yakult Ladies in the future, it is necessary to

make preparations for determining working conditions of a Yakult Lady based on the results of the interview

on working conditions.

0 0 0 0全体 (N=500) 0.0 0.0 0.0 0.0A(2,000,000 MMK超) (n=100) 0.0 0.0 0.0 0.0B(1,000,001 - 2,000,000 MMK) (n=100) 0.0 0.0 0.0 0.0C(400,001 - 1,000,000 MMK) (n=100) 0.0 0.0 0.0 0.0D(200,001 - 400,000 MMK) (n=100) 0.0 0.0 0.0 0.0E(200,000 MMK以下) (n=100) 0.0 0.0 0.0 0.0

SEC

魅力を感じる 75.075.072.076.073.079.0

どちらでもない 14.412.017.0 16.014.0 13.0

魅力を感じない 10.613.011.08.013.08.0

無回答 (%)

0 0 0 0

全体 (N=500) 0.0 0.0 0.0 0.0

A(2,000,000 MMK超) (n=100) 0.0 0.0 0.0 0.0

B(1,000,001 - 2,000,000 MMK) (n=100) 0.0 0.0 0.0 0.0

C(400,001 - 1,000,000 MMK) (n=100) 0.0 0.0 0.0 0.0

D(200,001 - 400,000 MMK) (n=100) 0.0 0.0 0.0 0.0

E(200,000 MMK以下) (n=100) 0.0 0.0 0.0 0.0

S

E

C

魅力を感じる

75.0

75.0

72.0

76.0

73.0

79.0

どちらでもない

14.4

12.0

17.0

16.0

14.0

13.0

魅力を感じない

10.6

13.0

11.0

8.0

13.0

8.0

無回答

(%)

Overall

A (Over 2,000,000 MMK)

E (200,000 MMK or less)

Feel attractive I can’t say either way I don’t feel attractive No answer

Q35.働くことに対するご自身の決定権(ひとつだけ) 0 0 0 0全体 (N=500) 0.0 0.0 0.0 0.0A(2,000,000 MMK超) (n=100) 0.0 0.0 0.0 0.0B(1,000,001 - 2,000,000 MMK) (n=100) 0.0 0.0 0.0 0.0C(400,001 - 1,000,000 MMK) (n=100) 0.0 0.0 0.0 0.0D(200,001 - 400,000 MMK) (n=100) 0.0 0.0 0.0 0.0E(200,000 MMK以下) (N=100) 0.0 0.0 0.0 0.0

SEC(世帯月収区分)

決定できる 60.263.064.062.053.059.0

決定できない 39.837.036.038.047.041.0

無回答 (%)

Q35.働くことに対するご自身の決定権(ひとつだけ)

0 0 0 0

全体 (N=500) 0.0 0.0 0.0 0.0

A(2,000,000 MMK超) (n=100) 0.0 0.0 0.0 0.0

B(1,000,001 - 2,000,000 MMK) (n=100) 0.0 0.0 0.0 0.0

C(400,001 - 1,000,000 MMK) (n=100) 0.0 0.0 0.0 0.0

D(200,001 - 400,000 MMK) (n=100) 0.0 0.0 0.0 0.0

E(200,000 MMK以下) (N=100) 0.0 0.0 0.0 0.0

S

E

C

決定できる

60.2

63.0

64.0

62.0

53.0

59.0

決定できない

39.8

37.0

36.0

38.0

47.0

41.0

無回答

(%)

Overall

A (Over 2,000,000 MMK)

E (200,000 MMK or less)

SE

C

(Househ

old

month

ly s

ala

ry cate

gory

)

Authority to decide to work (Select one)

I can decide I can’t decide No answer

23

① Monetary amount per month that they want to earn working as a Yakult Lady

Of the overall survey target, 27% of women responded, “150,001-200,000 MMK,” which was the highest of

all, followed by 18% in “300,000 MMK or less,” and “200,001-250,000 MMK,” respectively. Even in the

BOP segment, the percentage for “150,001-200,000 MMK” was 30% or higher, which was the highest of all.

② Range of the branch where they can commute from home

Of the overall survey target, 34% of women responded, “less than 5 km,” which was the highest of all,

followed by 27% in, “less than 1 km,” and 12% in, “less than 10 km.” The same trend can be seen in the BOP

segment, and there is no difference in SEC.

③ Transportation methods in the case of commuting from home

Of the overall survey target, 47% of women responded, “I need transportation,” which was the highest of all,

followed by 41% responding, “On foot,” and 34% responding, “By bus.” Similar to “Range of the branch

where they can commute from home,” there is no difference in transportation methods in SEC.

④ Number of days that they can work per week

Of the overall survey target, 41% of women responded, “5 days,” which was the highest of all, with 35%

responding, “6 days,” and 17% responding, “7 days.” Looking at the BOP segment, in SEC-E 40% of women

responded, “6 days,” which was the highest of all. As the SEC gets lower, the percentage of women who

responded “6 days” rather than “5 days” tends to be higher.

Development of Business Plans

3-1. Development of Verification Matters to be Used as Criteria for Commercialization

(1) Establishment of reliable sales schemes by Yakult Ladies

We make sure that the sales networks and production and distribution systems can be built to establish a

home delivery system utilizing Yakult Ladies, and the home delivery system will be accepted at the site.

Issues to promote commercialization Related survey items implemented

- Development of regular purchase customers in

sales areas

- Acceptability of work as a Yakult Lady at the site

(including local business practices and customs)

- Status of development of basic infrastructure

- Distribution control to keep products refrigerated

- Survey on investment and business environments

- Survey on the market of this project

- Product manufacture and distribution related

survey

- Survey on sales, marketing, and after sales

service related issues

- Development of business plans

- Implementation of interview survey

24

(2) Response to local needs regarding attitudes toward health, price and taste

In an area with poor sanitation, a major purpose of this project is to provide Yakult, which improves the

intestinal environment, through a home delivery system utilizing local women, and establish continuous

drinking habits. It is necessary to promote the continuous purchase of Yakult for commercialization, and it

is essential to properly understand the opinions about price and taste at the site, as well as ideas.

Issues to promote commercialization Related survey items implemented

- Acceptability of flavor of lactic acid drinks

- Attitude toward health management and

knowledge

- Consumer’s payment capabilities

- Survey on sales, marketing, and after sales

related issues

- Development of business plans

- Implementation of interview survey

(3) Response to localization by identifying USP and issues for launch

Lactobacillus casei strain Shirota provides useful functions of surviving until it is delivered to the intestine

and supporting the improvement of the intestinal environment. We will use the latest technologies and

knowledge of Yakult probiotics, which utilize Lactobacillus casei strain Shirota, as the strengths in

Myanmar. We also have strengths in the Yakult Lady system, which is a unique distribution network

developed through the accumulation of knowhow around the world. We will develop this system in

Myanmar and deliver products to general homes and retails stores.

Issues to promote commercialization Related survey items implemented

- Understanding and acceptability of probiotics at

the site

- Acceptability of home delivery system

- Survey on sales, marketing, after sales service

related issues

- Survey regarding consideration for the

environment and society

- Consideration for the development effect from

implementing this project

- Development of business plans

- Survey on the market for this project

- Implementation of interview survey

(4) Feasibility of sales and delivery methods (Development of Yakult Ladies)

We verify whether the home delivery system using Yakult Ladies will be accepted at the site, and the

development of instructors and effective training methods to introduce the system at the site.

Issues to promote commercialization Related survey items implemented

- Applicants and instructors for Yakult Lady

(recruiting related)

- Ensuring the level of a Yakult Lady (ensuring

reading and writing, and calculation

capabilities)

- Ensuring the level of Yakult Lady instructors

- Acceptability of door-to-door sales

- Survey on sales, marketing, after sales service

related issues

- Development of business plans

- Implementation of interview survey

25

(5) Development of collaborative relationships with related government agencies and academic organizations

We will develop collaborative relationships with related government agencies and academic organizations

to comply with the laws and regulations concerning this project, and obtain permits appropriately.

Issues to promote commercialization Related survey items implemented

- Arrangements of information of knowledgeable

people at the site

- Preparation for the future survey on drinks

- Consideration for the possibility of joint

research

- Local food regulations (including health claims)

- Understanding of safety and health related

issues

- Survey on investment and business

environments

- Development of business plans

- Implementation of interview survey

(6) Remaining issues and future solutions

Remaining issues Solutions

Securing sufficient Yakult

Ladies

Consideration for application guidelines based on the results of the

questionnaires

Implementation of recruiting using cases from neighboring countries

where we have already entered the business (home visits and others)

Promoting understanding of

probiotics products (lactic

acid drink Yakult)

Improvement in recognition of Yakult, strengthening collaboration with

related government agencies and knowledgeable people, and

implementation of product sampling and probiotics training seminars

3-2. Procurement Plan for Raw Materials and Equipment

We try to achieve the target for local procurement, but when we cannot procure raw materials and equipment

that meet our production control standards at the site, we will procure them from Japan or other countries.

As a result of the survey, they are expected to be procured in general.

3-3. Production, Distribution, and Sales Plans

Production plan: Decide on a daily production plan according to the sales status (initial production capacity:

134 thousand bottles per day)

Distribution plan: Similar to countries where we entered in business, we strive to establish a refrigerated

logistics infrastructure from production plants to stores, home delivery sites and customers. We will use

motorbikes, bicycles and handcarts according to the local laws (vehicle regulations). It is expected that

product distribution will develop without any problem in general.

Sales plan: Start sales from Yangon, the largest city, and gradually expand to regional cities.

3-4. Personnel Plans and Human Resource Development Plans

At General Affairs Department and Human Resources Department, Production Department, Sales

Department, and Academic Public Relations Department, first we will develop executives using the

minimum number of temporary workers from Japan. After that we will carry out recruiting activities

centering on Japanese employees and executives, and implement human resource development via Yakult-

specific corporate culture, respecting Myanmar culture and striving for integration. With regard to the number

of employees required for organization operations, we will decide this according to the sales start schedules

26

and subsequent expansion of sales quantity.

When we look at the situation in the ASEAN areas where we entered in business, we started sales with approx.

30 Yakult Ladies, and increased them to 200 to 400 people five years after the start of sales.

The situation is expected to be the same in this location.

Consideration for the Development Effect by Implementing This Project

4-1. Setting the Development Issues We Want to Solve through BOP Business and Indicators

There are roughly two Myanmar development issues that we want to solve through this project: BOP business

of home delivery service for lactic acid drinks. The indicators are as follows.

Myanmar development issues that can be solved through BOP business

Issues Solutions Development

indicators

Improvement in health of

Myanmar people through

the spread of lactic acid

drinks

(1) Improvement in the intestinal environment of

Myanmar people, reducing infantile acute diarrhea,

which is often seen in developing countries

(2) Education and promotion of preventive medicine to

stop people from becoming ill

●Number of Yakult

bottles sold

●Number of Yakult

Ladies Reducing the gender gap

by providing working

opportunities for women

Improvement in the rate of women’s employment by

widely providing work opportunities as a Yakult Lady

for women, including those who are nursing a child

(1) Improvement in the intestinal environment and reducing the onset of diarrhea

Myanmar is a country in Asia that has the highest fatality rate of children below the age of 5. According to

the UNICEF statistics, “The State of the World's Children 2016,” the death rate per 1,000 people was 50

people; worse than the 48 people in India, and was ranked the 44th worst in the world. The causes of the death

for children below the age of 5 were mainly diarrhea, malnutrition, stillbirth and premature birth, in addition

to the acute respiratory diseases. The percentage of children below the age of 5 who had treatment with oral

rehydration salts (ORS) when they had diarrhea remained 61%.

In the reports obtained from the National Nutrition Center (NNC) in The Department of Public Health under

the Ministry of Health and Sports which we visited in the first survey, there were issues with the disease rate

in diarrhea for children below the age of 5 and the treatment. Ten percent of children below the age of 5 had

diarrhea within two weeks before the survey, with a high percentage of children below the age of 2; 17% in

children 12 to 23 months old. The percentage of children who were taken to the hospital with diarrhea

remained 54%, and 14% did not have any treatment. Although treatment at national hospitals is free, they are

always crowded. Considering the transportation, costs, and time required until the patients reach the hospital,

they have difficulty obtaining treatment. In this situation, it is preferable that the spread of drinks that support

improvement in the intestinal environment will lead to a reduction in diarrhea.

27

Disease rate of diarrhea by age in months Treatment for diarrhea

(Source: Myanmar Demographic and Health Survey 2015-2016)

In the second health attitude survey, 6% of people responded there was a problem with their intestines.

Women suffered slightly more than men.

The number of Yakult bottles sold were used as an indicator for reducing the onset of diarrhea based on the

test results in “Preventive effect of Lactobacillus casei strain Shirota concerning infantile acute diarrhea,”

targeting 3,758 children (aged 1 to 5) in Kolkata, India (large scale joint research conducted by the National

Institute of Cholera and Enteric Diseases (NICED) and Yakult Honsha in 2010). As a result of drinking a

bottle per day for 67 to 84 days (12 weeks), the disease rate of diarrhea in people who drank Lactobacillus

casei strain Shirota was reduced by 14% annually.

(2) Increase in the employment rate of women

According to the World Bank data, when we compare the economic participation rate of male and female

labor forces in 2016 respectively by income, there is a significant gap in the economic activity participation

rate between men and women, as shown below. In particular, in the middle income group, the economic

activity participation rate of men was 77%, with the rate for women remaining at just 47%, and there was a

30% gap. The expansion of women’s employment will lead to reducing the gender gap.

Economic activity participation rate of men and women by income (2016)

(Source: Based on the World Bank materials)

83

77

6870

47

52

0

10

20

30

40

50

60

70

80

90

Low Income Middle Income High Income

各収入域における男女の経済活動参加率(2016年)

男性(15歳以上) 女性(15歳以上)

(単位:%)

Economic activity participation rate of men and women

by income group (2016)

(Unit: %)Men(age 15 or older)

Women(age 15 or older)

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We conducted an interview survey for companies who hire many working women and organizations who

promote it.

We mainly asked the representatives and chiefs of the organizations and companies about the women’s work

status, working environment, and training.

- Survey period Wednesday, September 19 to Friday September 21, 2018

- Survey area Yangon area

- Survey target Companies and organizations

Name Outline of business activities

National YWCA of

Myanmar Founded in 1900. Business activities include holding health seminars;

providing micro financing; holding seminars for women on laws, the

environment, and the prevention of human trafficking; awarding

scholarships for children; and supporting women in refugee camps.

JOICFP Founded in 2005. The organization has four dedicated staff, and works

with the Ministry of Health and Sports to provide care for women before

and after childbirth. Business activities include holding health seminars

for parents and children, visiting pregnant women and recommending

examinations by doctors, and vaccinations for children aged 5 or

younger.

Gold Power Co., Ltd. Founded in 1993. Business activities include the production and sales of

baby food, hotel business, sales of generators, production of nutrient-

enhanced rice through a technology transfer from a French NGO. Eighty

percent of the employees are women.

J-SAT Co., Ltd. Founded in 1998. Temporary employment and talent introduction.

Eighty percent of the employees are women.

YWCA JOICFP Gold Power J-SAT * Scene at work

(Source: Pictures taken when we visited Myanmar)

Working women give the impression that they are diligent, sincere, strong in numbers, and honest. It is

believed that financial management can be assigned to them. In urban areas, the number of working couples

is increasing, and women who work outside are increasing as well. However, if women with a young child

try to work, it will be difficult without the parents living together or nearby who can take care of their children.

With rising prices, it is difficult to bring a parent to their home. Mothers will need day nurseries. The problem

is that some husbands oppose their wives working outside and others spend the income earned by their wives.

There were cases in which we invited husbands to attend the seminar and made them understand the

possibility of making their families affluent in the future.

Women tend to prefer sewing, making soap and administrative work. There are many cases in which they

quit a job early because of issues with in-house communication, future prospects of the company and wages.

In order to develop excellent sales persons, it is indispensable to provide commission systems and a superior’s

care. Specifically, it is important to set targets clearly and inform them of incentives when they achieve the

targets; superiors need to communicate well and solve their dissatisfaction. Also, with regard to recruiting,

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there is hidden excellent talent who were unable go to school due to political and familial circumstances, and

it is essential to find excellent talent through interviews and so on instead of only evaluating applicants with

resumes and an academic background.

4-2. Scenario for Producing the Development Effect after BOP Business is Implemented (Draft)

We strive to solve the development issue of the BOP segment through the promotion of a business that can

be expected to produce effects: increase the women’s employment rate of the BOP segment and improve the

intestinal environment by providing daily drinks in a convenient home delivery service and making them

healthy.

We obtained approval for health claims in some countries in previous Yakult overseas business operations;

the lactic acid drink Yakult regulates the functions of the intestines. Because the results of the second health

attitude survey showed high expectations for intestinal health after drinking Yakult, we will continue to

provide training in the future. These efforts will lead to making it a habit to drink lactic acid drinks daily,

improving people’s health.

While some statistics show that the gender gap tends to decrease with education, including an academic

background, a gap remains between men and women in participating in economic activities. A Yakult Lady’s

job includes explaining and selling products that contribute to health of Myanmar people, and it is easy to be

approved by the surrounding people. Also, it provides work conditions that make women from the households

of the BOP segment comfortable to work. By introducing this new kind of occupation, it will lead to

improving the women’s employment rate. The second health attitude survey shows that the attitudes toward

women working from Yangon citizens were promising to support the women working status.

Consideration for the possibility of collaboration with JICA projects

With regard to collaboration with a “Spread and verification project regarding electric assist bicycles”

proposed by JICA, there will be room to consider collaborations in the future if we can use electric assist

bicycles for commercial purposes without any legal problems by complying with Myanmar laws, and we can

expect the price to be worth the costs.